EURUSD retracement scalping.

Rare opportunity to have an easy spotted perfect entry: previous peaks on a daily chart are exactly on the same level as a major Fibonacci level, as well as a round number 1.32. On top of that it is a 21 EMA, which usually acts as a temporary support for a pair that deviated so much away from it in the last weeks. All in all – if you entered a long scalping trade at or below 1.32 – a big applause.

Now the tricky part with retracements is the target. It was quite a sheer drop, based on mostly rumours of what actually is going on in China, rather than anything else. If nothing nasty is coming to the markets in the next 24 hours, scalpers and hedgers will pull it back somewhere just below the previous tops. To avoid the risk, our strategy would be to quit before the weekend no matter what, but for now we set the target at 1.3330 and let’s see how it would be cooking

And the Stop Loss – the king of the risk. We do not expect any big players to risk selling EUR at these levels, so new lows today or tomorrow are unlikely (especially at such a all-round support level). Stop Loss can be quite tight at 1.3280, but we prefer to keep an eye on the market instead and give room to the automated exits setting SL at 1.3248.